Australia's corporate watchdog will renew its attempt to have a high-profile liquidator removed from a controversial bankruptcy case.

In the Federal Court on Monday the Australian Securities and Investments Commission (ASIC) will allege the accounting firm PKF Lawler failed to disclose a prior relationship with a company involved in the collapse of one of Australia's largest construction companies.

The case will be closely watched by the industry, and if successful the decision could have far-reaching implications for insolvency and restructuring firms, which rely on referrals for most of their work.

Walton Construction, responsible for projects including the redevelopment of David Jones's Melbourne CBD store, went into liquidation in October.

ASIC, which says Walton owes around $69 million to creditors, is investigating the collapse amid allegations that the former directors of Walton, along with directors of business advisory firm Mawson Group, may have phoenixed the Walton Group.

PKF Lawler was referred the Walton case by Patrick McCurry, a director of the Mawson Group.

Mawson Group has helped generate significant fees for PKF, having referred six jobs to the business advisory firm in the past.

PKF told the court such referrals were common place and did not affect its independence in carrying out its functions as administrators.

Creditors' moves to have PKF sacked failed when another company, with links to the Mawson Group QHT Investments, voted to keep them.

QHT bought $18.9 million worth of Walton debt for the bargain price of $30,000 two weeks before the company was placed in administration, a move which gave it voting rights at creditors' meetings.

ASIC's initial attempt to oust the liquidator earlier this year failed, but amid ongoing investigations the regulator decided to appeal.

Sub-contractors owed millions

A few days before administrators were appointed to the Walton Group, two new companies emerged, Peloton Builders (later renamed Tantallon) and Lewton Asset Services.

Mawson Group directors worked with Walton executives to transfer Walton assets to the two new companies. Mawson directors also became directors of the companies.

These are known as phoenix companies.

When a company goes bankrupt, a second company can be started up with the same directors. This second firm has no obligation to pay the failed company's liabilities.

It's been more than six months since Walton collapsed and the liquidator has failed to get a lot of the records of the assets that were put in the phoenix companies.

Civil contractor Les Williams

It becomes fraud when phoenix companies emerge from the ashes of insolvency, stripping the original company of its most profitable assets and transferring them to a new one, way below their market value.

Subcontractors who worked for Walton and are struggling to recoup the money they are owed say they have no idea what the phoenix companies paid for the Walton assets.

There is no suggestion of fraud, but subcontractors want the issue examined when a planned public examination is held.

Sunshine Coast-based civil contractor Les Williams is owed $696,000 by Walton Construction and is angry at the way profitable contracts were transferred to the phoenix companies.

"It's been more than six months since Walton collapsed and the liquidator has failed to get a lot of the records of the assets that were put in the phoenix companies," he said.

"That's made it difficult for us to claim back money because we have no evidence to support our claims."

Many subcontractors, who are owed collectively around $27 million, claim that while the new companies Tantallon and Lewton got the profitable projects, Walton Construction was left with loss-making ones.

They say they have no idea how much Mawson was paid for its work, but there is a record of Walton making a $1.3 million payment to Tantallon – whose directors includes one from the Mawson Group.

The ABC has contacted the Mawson Group with questions but is yet to receive a response.